Nigeria’s Transcorp Targets N35b Revenue From SAT-3 Cable

Mergers, Acquisitions and Financial Results

Transcorp has projected a revenue of N35 billion from the underground Submarine Cable (SAT-3) it inherited through the acquisition of the Nigerian Telecommunication Limited (NITEL).

Vice President, Corporate Communication of Transcorp, Adedayo Oyo disclosed this at an interaction with journalists in Abuja On Wednesday. Mr Ojo also used the opportunity to clarify issues on whether SAT-3 has been sold or not as speculated.

According to the vice president, the submarine cable which Transcorp inherited through the acquisition of the NITEL is intact and has not been sold to any organisation, and has been handed over to a firm to manage. He stated that Trasncorp is expected to make about N35 billion revenue from the venture within the next five years.

Speaking further, Ojo disclosed that the Management of Transcorp has initiated a number of plans meant to transform both NITEL and its mobile telecommunication arm, M-tel. Part of the transformation plans, he said are total restructuring of the telecommunication companies for effective performance, adding that Transcorp did impose management contract for SAT-3 on NITEL management.

The Transcorp official stated that management of NITEL was part of the decision to hand over SAT-3 to management contractor. His words: "SAT-3 has not been sold to any company".

He stressed that Transcorp has not sold any facility inherited from either NITEL or M-tel. Explaining further, Ojo said that core assets of both M-tel and NITEL including the SAT-3 cable are still intact, adding that Transcorp has no intention to sell them.

He added that what was sold were non assets of NITEL, which he stated were sold by the privatisation agency, the Bureau for Public Enterprises (BPE) to settle former workers of the NITEL who were affected by the privatization exercise.

Ojo claimed that $750 million paid by Transcorp for the purchase of NITEL/M-tel too much considering the poor state of the telecommunications firms. He pointed out that NITEL had many facilities that could make it a big firm, but was poorly managed.